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    A STUDY OF CONSUMERS

    REVEALED PREFERENCE and AWARENESS IN LUCKNOW

    Submitted By

    Rajib Lochon GogoiPGDBA-1styear

    Enroll no-946

    UNDER THE GUIDANCE OF

    Mr. Vibhor MishraHOD, DBA

    IISE, Lucknow

    ______________________________________________________IISE,LUCKNOW

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    ACKNOWLEDGEMENT

    I am extremely grateful to all those who have shared their views, opinions, ideas and

    experiences which have significantly improved this Project Report. I would like to

    express my sincere thanks to, Mr Vibhor Mishra HOD, DBA International Institute For

    Special Education, Lucknow for his guidance and sincere efforts towards bringing in

    years of his vast industrial experience into this project.

    I would like to thank my Kaizen Mentor Mr. Shariq Mohammad for

    helping me in this project.

    I am very thankful to all the respondents and the employees for their cooperation

    in the course of my study.

    A special thanks to Dr. Girish Bihari CMD, IISE business school Lucknow for

    giving me the opportunity to research on my topic in IISE.

    Rajib Lochon Gogoi

    Enroll No.-946

    ________________________________________________________IISE,LUCKNOW

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    PREFACE

    It is old news that India is one of the fastest growing markets for the Personal Computer.For a developing economy it is also very interesting that a lot of this growth has beenpredicted not just in our urban pockets but even in the rural areas. The common Indianvillager will be introduced with a level of connectivity and information access which hehas never known before. But the February 2007 report of Manufacturers' Association forInformation Technology on the current and forecasted trends of the Indian PC industrybrings to light another incredible data - laptop sales have been increasing at twice the rateof the desktop!

    India's personal computer market is undergoing a major transition as premium notebook

    computers are being brought to the mainstream, with almost half the prices, comparedwith a year ago.On average, the prices of notebook computers now range between Rs 25,000 to Rs60,000 compared with about Rs 1,00,000 to Rs 1, 25,000 about 18 months ago.Moreover, notebooks now cost only around Rs 10,000 more than a premium desktoppersonal computer. Prices are expected to fall further, say industry sources.

    Notebook maker Hewlett Packard's marketing head in India expects the notebook marketto grow by 50-60 per cent in the next year. The company sees a huge penetrationpossibility for the product in India since the ratio of desktops to notebooks in the countryis 1:30, compared with a ratio of 1:6 in Thailand.

    This difference is so much so that there are estimates that the annual laptop sales in Indiawill cross the desktop sales in the next 5 years. Some even put this prediction for the year2010, just 3 years from now! Is it genuinely achievable, that a majority of India Inc'sintroduction to the computer age will be straight through the Notebook computers?

    Given the choice of portability, flexibility and ease of use and narrowing of price-performance gap that once existed between portables and desktops, consumers are almostoverwhelmingly inclined to buy notebook PCs

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    EXECUTIVE SUMMARY

    BACKGROUND:

    The forces of globalization and technological change haveopened up new Opportunities as well as change to the industries, toserve the needs of the commercial enterprise, governmentorganization, institutions and individual customers. As the markets arechanging rapidly, the companies are pushing appropriate distribution &technological strategy, to meet the current market and the newchallenges. Today the economy is changing its pace shifting economicneeds.

    The current Laptop market scenario is very dynamic, where customer prioritychanges very frequently. Here in my research paper I tried to measure CSI (CustomerSatisfaction Index) of HCL new low cost laptops. In the beginning of my research paper Itried to collect as much information as I could from every source on Indian Laptopmarket. I used Internet, Magazines, and newspapers to gather information on the presentLaptops market in India.

    Problem statement:

    Awareness about HCL leaptops

    Objectives

    to analyze the buying behavior of consumers

    to assess the consumers expectations from the product

    to examine the consumers attitudes towards different Laptops

    to estimate the level of consumer satisfaction after hearing & using of the

    product

    Research methodology:

    The proposed research is exploratory and analytical. The satisfaction andrealization of satisfaction is a matter of individual inference and experience. The researchdesign needs to be geared heavily towards the qualitative aspects of CSI.

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    The population size is 100 and will be based on a consensus. The area of enquiryis the Lucknow city, U.P. The primary data is proposed to be collected through structuredquestionnaires with a fine blend of open-ended and close-ended questions by the mode of MANAGEMENT GAMES. Secondary data is acquired on the basis of facts throughreview of literatures. Since the research is of high-voltage from the qualitative angle of

    customer awareness, I analyze data in the form of percentages & graphs using tables.

    There are a few research LIMITATIONS like:

    The bias/ prejudice

    Non- response error

    Inconclusiveness

    Major Findings:

    HCLs idea of launching a low priced laptop is an innovative one but HCL lacksin product awareness. People know a little about the new range of leaptops.

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    CONTENT SHEET

    Topics Page No

    Acknowledgement I.

    Preface II.

    Executive Summary IV.

    Introduction 7

    Company Profile 8-12

    Research Objective 13-14

    Analysis & Interpretation 15-22

    Findings & Recommendations 23

    Limitations & conclusion 24

    Bibliography 25

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    INTRODUCTION

    After the launch of Nano, the one lakh car, it's now time for the cheapest laptop tohit the markets. HCL launched their fully functional, ultra portable range of laptops thatoffer mobile internet at only Rs 13,990. Aimed at the masses, MiLeap or 'My InternetLeap' has been designed exclusively for the Indian consumer.

    It's the price that makes MiLeap tick. While the cheapest notebook begins at around Rs20,000, MiLeap breaks the price barrier and makes it easy for the average man to own alaptop. For example, Compaq's low-end Presario notebooks begin at around Rs 24,000,and Acer's notebooks with Celeron processor begins around Rs 25,000.

    "MiLeap will be the future of computing. It will herald in a new category of computingdevices, opening up a wide range of new usage scenarios and application areas," saysAjai Chowdhry, chairman and chief executive, HCL Infosystems. MiLeap brand of HCLleaptops with Microsoft Windows XP Home operating system is the lowest priced amongthe MS operating system powered laptops.

    Portability, rather than mobility has emerged as the `number one' driver for the sustainedgrowth in notebook PC shipments in India.

    HCL already has an existing range of its laptops called Leaptop. The entry-level laptop

    however does not have a hard disk and runs on Linux, though Microsft Vista can beadded in the high-end Y Series.

    Like Classmate PC from Intel, the two new models with a 7 inch screen size are ultra-light and weigh under-one kg. But there have been modifications made and customisationdone for the product to suit to the needs of other user segments than just students.

    Despite the price, the new range offers a full PC functionality with Internet experienceunlike Classmate, and at a price much lower than Classmate.

    MiLeap is targeted at consumer who needs to stay connected, informed, entertained and productive-anytime and anywhere. Its lightweight and small in size makes it soconvenient, that one does not think twice about carrying it to the office, home, gym or park, or using it in a train, bus, plane or metro, claimed the company.

    The price of MiLeap X Series starts at Rs 13,990 and it will be available in both flash-based and disk based storage versions. Its design makes it dustproof, shock-proof anddurable just like Classmate.

    ________________________________________________________IISE,LUCKNOW

    http://timesofindia.indiatimes.com/articleshow/2703318.cmshttp://economictimes.indiatimes.com/articleshow/msid-2701343,flstry-1.cmshttp://economictimes.indiatimes.com/articleshow/msid-2701343,flstry-1.cmshttp://timesofindia.indiatimes.com/articleshow/2703318.cms
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    Both the models have network ports, are Wi-Fi ready, have the option for a data card andare available with GUI-enabled Linux OS which the company has said it will support

    windows vista OS.

    COMPANY PROFILE

    At a time when India had a total of 250 computers, Shiv Nadar led a young team whichpassionately believed and bet on the growth of the IT industry. That vision in 1976, bornout of a Delhi barsaati (akin to a garage start up), has resulted 3 decades later increating a US $ 4 Billion Global Enterprise. HCL is today a leader in the IT industry,employing 45,000 professionals, has a global presence in 17 countries spanning locationsin the US, Europe, Japan, ASEAN & the Pacific Rim and a pan India presence across 360points. HCL's business today spans IT Hardware manufacturing & distribution, SystemIntegration, Technology & Software services, Business Process Outsourcing, and

    Infrastructure Management.

    HCL Infosystems is India's premier information enabling company. Leveraging its 27years of expertise in total technology solutions, HCL Infosystems offers value-addedservices in key areas such as system integration, networking consultancy and a widerange of support services.HCL Infosystems is among the leading players in all the segments comprising thedomestic IT products, solutions and related services business, which includes PCs,servers, networking products, imaging & communication products.Continuously meeting the ever increasing customer expectations and applications, itsfocus on integrated enterprise solutions has strengthened the HCL Infosystems SSO's

    (System Support Organization) capabilities in supporting installation types ranging fromsingle to large, multi-location, multi-vendor & multi-platform spread across India. TheSSO, comprising a direct support force of over 1600+ members, is operational at 170+locations across the country and is the largest such human resource of its kind in the ITbusiness. A majority of the SSO members have been specially trained in a variety ofsupporting solutions, the company's key focus area.HCL Infosystems ' manufacturing facilities are ISO 9001 - 2000 & ISO 14001 certifiedand adhere to stringent quality standards and global processes. With the largest installedPC base in the country, four indigenously developed and manufactured PC brands -'Infiniti', 'Busybee' 'Beanstalk' and the 'Ezeebee' - and its robust manufacturing facilities;HCL Infosystems aims to further leverage its dominance in the PC market. It has beenconsistently rated as Top player in PC industry by IDC .The 'Infiniti' line of businesscomputing products is incorporated with leading edge products from world leaders suchas Intel. A fully integrated and business-ready family of servers and workstations, the'Infiniti Global Line' is targeted at medium and large companies to help them to managetheir enterprise-related applications. It has considerable dominance in verticals likefinance, government, and education & research.The Frontline Division of HCL Infosystems has an extensive network of over 1000resellers across 300 cities. Frontline Division has actively promoted the penetration of

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    http://economictimes.indiatimes.com/articleshow/msid-2701343,flstry-1.cmshttp://economictimes.indiatimes.com/articleshow/msid-2701343,flstry-1.cms
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    PCs in the home and the small office/home office (SOHO) segments, through BeanstalkPCs, Toshiba Laptops & Dragon Speech Recognition Systems.

    Constant evolution with changing times has helped HCL Infosystems retain its leadershipand profitability for all stakeholders. In 1992, HCL formed a joint venture company,

    HCL HP, with the international computer giant, Hewlett-Packard (HP), and precipitated atechnological leap by achieving world class manufacturing expertise in the country forHP's RISC/UNIX based business servers and workstations. In 1997, HCL and its jointventure partner, HP, re-organized their joint business activities in India through thebuying back of HP's 26 per cent of equity in HCL HP by the HCL promoters.Last year, HCL entered into an alliance with SUN Microsystems to be their EnterpriseDistributor for entire range of SUN products. Combing the latest technology & best-practices from SUN, with 27 years of customer relationship and pan Indian sales &service expertise of HCL, it aims to leverage the relationship to offer complete spectrumof IT to the end user.HCL has closely seen the IT industry rise from scratch, and has actively participated in its

    progress. During the twenty-seven year journey, it has picked up valuable lessons inserving the IT needs of the Indian customer and gathered domain expertise tosuccessfully service various businesses.

    HCL InfiNet, our 100% subsidiary focuses on the ever-growing segment in Imaging,Telecom and Communication products, solutions and services. HCL InfiNet's productportfolio covers a range of other office automation and communication products throughalliances with world leaders - including mobile communication products from Nokia,Duprinters from Duplo, LCD projectors from InFocus, Mass Mailing solutions fromPitney Bowes and voice and telecommunication solutions from Ericsson. It has exclusivesales and support partnership with Toshiba Corporation, Japan, for sales and servicing of

    its imaging and photocopier products.The Managed Network Service offerings for corporate include VPNs, ASP offerings, CoLocation/ hosting, CDNs, security, corporate internet telephony solutions, technical andconsumer help desks, 24/7 Network Operations Centre monitoring and a host of valueadded networking services. Consumer services include dialup PSTN/ISDN Internetaccess, Valufon calling cards and VoIP telephony devices.As a leading information enabler, HCL Infosystems has long standing relationships withworld technology leaders such as SUN for enterprise computing solutions, Intel andAMD for PCs and PC Servers; Microsoft, Novell and SCO for operating systems andsoftware solutions; Toshiba Corp. for business automation equipment; and Oracle,Sybase and Informix for RDBMS platform, EMC, Veritas for storage solutions. The aim

    is to straddle the entire landscape of information enabling technology far morecomprehensively, effectively and competitively.

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    HISTORY

    Born in 1976, HCL has a 3 decade rich history of inventions and innovations. In 1978,HCL developed the first indigenous micro-computer at the same time as Apple and 3years before IBM's PC. This micro-computer virtually gave birth to the Indian computerindustry. The 80's saw HCL developing know-how in many other technologies. HCL's in-depth knowledge of Unix led to the development of a fine grained multi-processor Unixin 1988, three years ahead of Sun and HP.

    HCL's R&D was spun off as HCL Technologies in 1997 to mark their advent intothe software services arena. During the last eight years, HCL has strengthened itsprocesses and applied its know-how, developed over 30 years into multiple practices -semi-conductor, operating systems, automobile, avionics, bio-medical engineering,wireless, telecom technologies, and many more.Today, HCL sells more PCs in India than any other brand, runs Northern Ireland's largestBPO operation, and manages the network for Asia's largest stock exchange network apartfrom designing zero visibility landing systems to land the world's most popular airplane.

    TIMELINE:

    1976

    - Hindustan Computers Limited (HCL) born.1977

    - Distribution alliance formed with Toshiba for copiers.

    1978

    - HCL successfully ships in-house designed micro-computer at the same time asApple. The Indian computer industry is born.1980

    - HCL introduces bit sliced, 16-bit processor based micro-computer.

    1983

    - Indigenously develops an RDBMS, a Networking OS and a Client Serverarchitecture, at the same time as global IT peers.1986

    - HCL becomes the largest IT company in India.

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    1988

    - HCL introduces fine grained multi-processor Unix-3 years ahead of Sun and HP.1990

    - Data Quest marks HCL No.1 amongst top ten computer giants.1991

    - HCL Ltd. and Hewlett Packard, USA, partner to form HCL-Hewlett Packard Ltd.- JV develops multi-processor Unix for HP-heralds HCLs entry into contract R&D.

    1994

    - Distribution alliances formed with Ericsson Switches and Nokia Cell phones.1997

    - HCL Infosystems is formed.

    - HCL's R&D spun-off as HCL Technologies- marks advent into software services.- JV with Perot Systems, stake divested in 2003.

    1999- Initial Public Offering made by HCL Technologies Ltd.- Formation of Global Board of Directors.

    2000

    - Large contracts won from Bankers Trust, KLA Tencor, Cisco, GTech, NEC amongothers.

    2001

    - JV with Deutsche Bank- DSL software formed.- HCL BPO Incorporated.- Acquired British Telecoms Apollos contact center in Belfast, Northern Ireland.- HCL Infosystems becomes largest hardware company.

    2002

    - Strong pursuit of nonlinear strategy to widen services portfolio; several JVs andalliances formed.

    - Strategic alliance forged with Jones Apparel Group, Inc. a fortune 500 company.

    - Infrastructure services division launched to address emerging global needs.- Software businesses of HCL Infosystems and HCL Technologies merged.

    2003

    - Largest BPO order ever outsourced to an Indian BPO firm, won from BritishTelecom.

    - Landmark deals signed with Airbus and AMD.- HCL manpower crosses the 20,000 mark.

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    2004

    - Accorded leader status by Meta Group in Offshore Outsourcing.- HCL is Indias No.1 PC 4th year in a row.

    2005- HCL signs Software Development Agreement with Boeing for the 787 Dreamliner

    program.- JV with NEC, Japan.- HCL sets up first Power PC architecture design centre outside of IBM.- Completes buy-out of JVs with Deutsche Bank and British Telecom's Apollo Contact

    Centre.- HCL integrates all group employees under hcl.in domain.- Sets up a dedicated Offshore Design Center for leading Tier-1 Aerospace supplier,

    Hamilton Sundstrand.- HCL Infosystems launches sub Rs.10,000 PC. Joins hands with AMD, Microsoft to

    bridge the digital divide.

    2006- 75,000+ machines produced in a single month.- HCL Infosystems in partnership with Toshiba expands its retail presence in India by

    unveiling 'shopToshiba'.- HCL Infosystems & Nokia announce a long term distribution strategy.- HCL the leader in Desktops PCs unveils India's first segment specific range of

    notebooks brand - 'HCL Leaptops'.- HCL Infosystems showcases Computer Solutions for the Rural Markets in India.

    - HCL Support wins the DQ Channels-2006 GOLD Award for Best After SalesService on a nationwide customer satisfaction survey conducted by IDC.

    - HCL AND ZEE - Dish TV team up to take DTH TV to its next level of growth inIndia

    - HCL Infosystems First in India to Launch the New Generation of High PerformanceServer Platforms Powered by Intel Dual - Core Xeon 5000 Processor.

    - HCL Forms a Strategic Partnership with APPLE to provide Sales & ServiceSupport for iPods in India.

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    RESEARCH OBJECTIVE

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    Research topic

    Project report on the launch of new low priced brand of HCL laptop.

    Research Objective

    The objective of this research is to do assessment of customers for the purpose ofimprovement of marketing strategy or increasing efficiency of marketing strategy.

    RESEACH METHEDOLOGY

    This survey comes under the domain of descriptive research, where different parameters raised in front of customers in the form of Questionnaire. I just tried tofind the proportion of different level of customers opinion through my questionnaire.

    Type Of Research -

    Data Type - Primary data

    Primary sources are original sources from which the researcher directly collectsdata that have not been previously collected. Primary data first handinformation collected through various method such as observation, interviewingand questionnaire.

    Data Size - 100

    Data Collection Method - Questionnaire method

    Data Collection Instrument- Structured Questionnaire

    Sample Technique - Convenience Sampling

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    This is a non-probability sampling. It means selecting sampleunits in just "hit & miss" fashion e.g., interviewing people whom we happento meet. This method is also known as accidental sampling because therespondent whom the researcher meets accidentally are included in the sample.

    ANALYSIS AND INTERPRETATION

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    The analysis and interpretation is based on the response given by the respondents

    on the basis of the questionnaire prepared.

    1. Do you possess a laptop?

    YES, 36

    NO, 64

    0

    10

    20

    30

    40

    50

    60

    70

    YES NO

    Response

    Do you possess a laptop?

    Serie

    ________________________________________________________IISE,LUCKNOW

    YES NO

    36 64

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    This shows that only 36% of the respondents possess laptop. This shows that yet thelaptop market in India is on boom, the market is not saturated and HCL has greatopportunity in the Indian market.

    2. If yes, which brand?

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    HCL ACER HP LENOVO SONY

    7 4 15 7 3

    HCL, 7

    ACER, 4

    HP, 15

    LENOVO, 7

    SONY, 3

    0

    2

    4

    6

    810

    12

    1416

    HCL ACER HP LENOVOSONY

    Response

    Brand of laptop the respondent possess-

    Series1

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    This shows that 15 of the 36% of the respondents possess HP laptops. This is somethingalarming to HCL as only 7 of them possesses HCL. This very clearly means HP isproviding some attributes to the customers that is much better than that of HCL. HCLneeds to study the products of HP and compare their product with HP and study thereason that is making HPs market share more than that of HCLs.

    3. Which brand comes to your mind first when you think of laptops?

    HCL , 16

    SONY, 27

    LENOVO, 35

    HP, 22

    0

    5

    10

    15

    20

    25

    30

    35

    HCL SONY LENOVO HP

    Response

    Which brand comes to your mind when you think of

    laptop?

    Serie

    This shows that brand recall of Lenovo is the highest and that of HCL is the lowestamongst the four options given. This gives a clear indication that HCL is lacking in brand

    ________________________________________________________IISE,LUCKNOW

    HCL SONY LENOVO HP

    16 27 35 22

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    awareness and brand diffusion. Thus HCL needs to work hard to be on top of the mind ofthe customers.

    4. Do you think price and features go hand in hand?

    Yes No

    33 67

    Yes, 33

    No, 67

    0

    10

    20

    30

    40

    50

    60

    70

    Yes No

    Response

    Do price and feature go hand in hand?

    Serie

    This shows that only 33% of the respondents think that if the price of a laptop is higherthan it will have a god features. This is a good sign and is in favor of HCLs new pricedlaptop. HCL,s new low priced laptop may succeed in Indian market.

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    5. Do you know which company has launched laptop worth Rs. 13999?

    HCL SONY LENOVO HP NO

    34 5 6 7 48

    HCL, 34

    SONY, 5LENOVO, 6HP, 7

    NO, 48

    0

    5

    10

    15

    20

    25

    30

    35

    40

    45

    50

    HCL SONY LENOVO HP NO

    Response

    Do you know the company that launched laptop

    worth Rs. 13999?

    Serie

    This show that only 34%of the respondents know about the new brand of HCL, 18% ofthem know that other company is launching that laptop and most surprisingly 48% ofthem do not know about such launch at all. This shows that the effort in the launch of the

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    new brand is lacking. HCL needs to use various media vehicles to make the prospectivecustomer aware of this launch. Moreover HCL needs to advertise for the same.

    6. Do you think if HCL is going for low price laptop then they must have

    sacrificed some features?

    YES, 63

    NO, 37

    0

    10

    20

    30

    40

    50

    6070

    YES NO

    Response

    Do you think if HCL is going for for low price laptop then they must have

    sacrified some features?

    Se

    This shows that 63% of respondent believe that HCL must have sacrificed some featureswhile presenting a new low priced brand. Thus it becomes important to HCL to tell thegeneral mob about the features of the new brand. Any dilemma in the customers mindmay be fatal to the companys new brand.

    ________________________________________________________IISE,LUCKNOW

    YES NO

    63 37

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    7. If yes then which features?

    If yes, then which features

    45

    19

    2324

    33

    20

    HIGH RAM

    WEIGHT

    BATTERY BAC

    BLUETOOTH

    INBUILT CAMER

    LOOKS & STYL

    ________________________________________________________IISE,LUCKNOW

    HIGH

    RAM WEIGHT

    BATTERY

    BACKUP BLUETOOTH

    INBUILT

    CAMERA

    LOOKS &

    STYLE

    45 19 23 24 33 20

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    45% of the respondents think that the new brand will have lesser RAM. 33% of themthink that new brand will be lighter. This is a good sign, low weight laptops are preferredto heavy weight laptops.20% of the respondents are suspicious about the looks and style of the new brand. HCLshould pay attention on this because laptops are handy and looks and style matter to them

    who carry laptops in their hand.

    FINDINGS AND RECOMMENDATIONS

    After studying the response of the respondents I found that HCLs idea of launching alow priced laptop is an innovative one but HCL lacks in some major fields which mayshatter this launch or reduce the effectiveness of the launch. A major section of thecustomers are not aware of the launch of new brand. HCL lacks in brand awareness andbrand diffusion. HCL should take some lesson from the HP which is master in this field.HCL should pay more attention on the general public as their new laptop is low pricedand is best suited for those who cannot afford costly laptops. If the prospective customers

    are not aware of this launch then the very purpose is not served. This laptop is similar tothe TATAs low priced NANO car.

    HCL should also highlight the features of the laptop that it possesses. Suspicion ofcustomers about the features shows that they are not aware of the features.

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    LIMITATIONS

    1. The survey was conducted at IISE campus. So a wide area could not be covered.

    2. Not all of the respondents were having good knowledge of computers.

    3. Due to time constraint the survey was conducted in a short period of time.

    4. There was a less difference between the demography of the respondents. Most of themwere young.

    CONCLUSION

    From the survey it may concluded that HCL lacks in brand diffusion, brand awarenessand advertisement.

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    BIBLIOGRAPHY

    1. Primary Data:Primary data was collected through the survey.

    2. Secondary Data:

    a. Published Data:

    Marketing Management by Phillip Kotler.

    b. Unpublished Data:

    www.google.com www.hclinfosystems.com

    www.answers.com

    ________________________________________________________IISE,LUCKNOW

    http://www.google.com/http://www.hclinfosystems.com/http://www.answers.com/http://www.google.com/http://www.hclinfosystems.com/http://www.answers.com/
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